Forum Replies Created
As we use a mortgage broker & work with whatever lenders are best at the time, we didn’t have a problem when we crossed that level (quite a while ago now).
More of an issue were the mortgage insurers – as there are only two if you are still requiring LMI it can become a juggling act whe deciding which property to place with which insurer – and this can influence the choice of lender, as some prefer one insurer over the other.
Only a year ago you could really only have a max of $1M debt insured through these insurers – though now it’s up at the $1.5M mark. That’s total BTW – one is at $750K, one at $800K – so if your lender only uses one insurer you will definitely have to shop around or go below the LMI threshold (usually 80%) to keep everyone happy
Cheers,
Aceyducey
Oh my god – woke up this morning and one bedroom has fallen off all my properties….that’s a 25-50% crash in their actual market value!
Who cares if property values fall – the property remains the same asset, it’s simply the perceived fair price that has shifted. There are a number of ways to add value back onto property & based on current population growth & building there’s not likely to be any systematic and realistic reason for a long-term fall in property prices in this country in the next 50+ years.
Of course an asteroid could strike Sydney, a nuclear war could break out, a virus kill every 3rd person as happened in Europe several times in the middle ages (following their property prices in the period during and between Black Death plagues is quite enlightening) or a device that allows us to each own a home in a different dimension could be invented.
However if there was some fundamental change in the value of property like these, the entire economy is likely to collapse anyway, so frankly owing money will be the least of an investor’s worries
Don’t second guess the market – just look at the realistic range of possibilities and assess your own exposure. If it’s too high, adjust it. If it isn’t don’t.
Don’t waste time worrying about the 90% of people who WILL lose if the economy shifts drastically.
Your worry will not stop them being affected, no matter how compassionate you feel you are!
Cheers,
Aceyducey
Originally posted by elves:I lost quite a few points when Ansett went down the tubes
Tell me about it – I was at Saphire level about to go Platinum cause of the three monthly o/s trips I was doing at the time.
We’ve cut up Amex recently – but only because I don’t like how difficult they are to deal with. Frankly after my experiences I’d NEVER recommend AMEX to anyone.
I like my other cards – it’s very useful to be able to pick up a property with a credit card (deposit not the entire loan) when you see a fantastic deal
Provided you manage the interest free period that is!Have only done this once so far with a property & once bought into a stock the same way for the same reason (instant opportunity, the delay in liquidating other assets would cause the opp to be missed) but I like to keep it up my sleeve.
Remember credit cards are only dangerous if you aren’t disciplined and in control. Just like fire.
Cheers,
Aceyducey
Originally posted by wrappack:The previous comments are uninformed drivel, rude, derogatory, arcane, stupid comments from a brain dead moronic dickhead of a person. Which probably explained why I nearly pissed myself while reading them[thumbsupanim]
THanks Wrappack glad you enjoyed them
I saw the first bit you quoted in a US site about buying decreased property….may see if I can find the URL again.
The second bit is all mine.
Personally I dislike the fervour with which some people chase deceased property. If you’re going to do it, do it professionally and sensitively. Ensure everyone is satisfied in the deal & ensure it’s repeatable (so whoever sold to you calls you when other old people in their family die).
Personally I find all the deals I want using other mechanisms & have generally over the years found that those who are interested in the deceased estates option have spent a lot of time reading US books & sites and not enough researching the Australian market. We are different!
Cheers,
Aceyducey
Originally posted by Monopoly:Quote:I agree with diclem, I wouldn’t sell if I were you not until you have owned them at least a year (and one day) even though the CG hasn’t been such that it would not be too costly in the way of a CGT bill.Heck – there’s no real CG at all!
Taking out selling costs he’s be luck to break even, so really if he wants to sell, the 12 month half CG thing really isn’t relevant
Cheers,
Aceycuey
I was hoping to access more of it for new i.p. [ohno2] Do u’s reckon i should try another valuer? (Although that one was used anyway,as it still gave me enough equity to get what i wanted. But more would be nice![biggrin]
Well if you got what you wanted why not sit on it and reval again in 6 month…you know you’ve got some extra up your sleeve even if the bank doesn’t agree
Perhaps you will next reval with a different lender.
Cheers,
Aceyducey
Hi Drew,
Hold on a sec – you’ve bought all four properties in the last 9 months at the top of a boom.
Well I’m not surprised you’ve seen limited CG!
Give the market some time to recover, recouperate & move forward – say 5-8 years.
If you can’t wait for this timeframe I suggest you consider a different type of asset class – sell all your investment properties & go buy shares.
Property is NOT a short-term proposition & we are not likely to see the huge short-term CG increases of recent years for some time.
I will also say that it doesn’t sound as if you’ve bought all that well either – personally the last property we bought was 9 months ago & we’ve seen it’s value increase by 25% BEFORE taking into account the reno we’re still completing on it (we moved in and got sidetracked
)I suggest you do a LOT more research before buying in future – your first four were learning experiences, learn from them.
You have identified one of the key problems with negative gearing, there’s a limit to how many properties you can buy
In case you need to resolve the -7K on your income in the short-term, I suggest you look into buying a few CG positive properties to balance them. If this involves selling one of the ones you bought – so be it…but expect to lose money on the sale and for it to take some time to sell – in many places in Australia it’s a buyers’ market right now.
If you can borrow more (particularly if you can do so overseas – say NZ), I recommend that you buy a few CG positive places to balance your portfolio.
However always keep in mind, if you did nothing for awhile where are you likely to be in 10 years, in twenty years. If you can sit on what you have, you might find that your portfolio ends up satisfying your wealth creation plans….just not in the first year
Cheers,
Aceyducey
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